Hundreds of jobs will be cut at iHeart Media as the debt-ridden radio and podcast giant is crushed by music streaming, the Post reported.
The company, led by CEO Bob Pittman, has cut fewer than 5% of its more than 10,000 employees, including hundreds of employees, as it streamlines its operations and eliminates redundancies. Sources said this amounted to a loss of employment.
iHeart spokeswoman Wendy Goldberg confirmed the layoffs. She noted that the company is focused on growing its Gen Z audience and that its radio broadcast audience has “more listeners than it did 10 years ago.”
“There are very few jobs affected in our 10,000-employee company, but there are some jobs that are affected. No matter how few jobs there are, we do not take this action lightly. All team members. is important to us and we respect and appreciate it.”
The company began laying off employees on Monday, and plans to continue layoffs on Tuesday, which one iHeart employee criticized as “despicable.”
“They want to bury the bad news during the presidential election,” the source said.
At X, some laid-off employees have already posted about layoffs.
“Today was the last day. @Sportstalk790“iHeart has implemented nationwide layoffs,” Stan Norfleet, host of Houston's Sports Talk 790, posted late Monday.
“Well, I was caught off guard because I had just agreed to an extension,” he added. “That being said, I will remain forever grateful for this opportunity! I believe that next season will be just as fruitful. Thank you!”
The company operates approximately 860 stations in more than 160 markets in the United States and has approximately $5.21 billion in gross debt and $4.85 billion in net debt, the company said in a statement. Second quarter earnings report.
“Just a little bit of 'life' news to start your Monday off right,” wrote Marty Bannister, a local talk show host in Ohio who focuses on college and professional sports.
“Due to the company's layoffs, my position has changed. @iHeartRadio has been excluded. Thank you to everyone who listened to our show, The Press Box, it was so much fun. Once again, local radio lost out. We've been through this before, but we'll bounce back like always. ”
Other cuts included Jay Letcher and Zach Brovner, co-hosts of Tampa Bay's sports radio talk show on 95.3 WDAE. Both men posted about the layoffs, with Brobner saying he was “blindsided” by the layoffs.
August, Wall Street Journal reported iHeart has asked the law firm Simpson Thatcher & Bartlett to lead negotiations with creditors to restructure significant debt, the company said. The law firm had no comment.
San Antonio, Texas-based iHeart has emerged from bankruptcy in 2019 by reducing its debt from more than $16 billion to less than $6 billion. However, the company continues to struggle to generate enough cash to service its debt.
For the quarter ended June 30, revenue increased 1% due to increased digital audio advertising, but adjusted earnings fell 21.4% year-over-year due to higher expenses.
The Journal reported that iHeart has a number of debt maturities in 2026, 2027 and 2028, amounting to virtually all of its $5.2 billion debt.
The company will announce its third quarter results on Thursday.
